There is a fact most people don't realize before they go about starting a new business opportunity and that is that around 90% of all businesses started will fail or simply go out of business within their first three years of business. Depending on the product or service, many businesses won't make it past their first winter. This is just a fact. This statistic is not just for any particular type of business - traditional, home based, international. It encompasses all of them.
When you take a look at why there are 10 most common causes of failure in a business opportunity. And remember, this is any business opportunity - home based, traditional or international.
1. Probably the number one cause of failure is running out of funding. Starting and running a business costs money and very seldom is there ever enough money coming in to cover it all, especially at first. Most people underestimate the amount of money they will need (they aren't realistic with their projections and haven't covered all the necessities. ) Without sufficient capitol to keep the business running without expecting the business to pay for it will fail.
2. Not having a solid game plan to follow. Most new business owner, especially the ones who fail, have not done the necessary research and have not found a mentor to help advise and lead them through the pitfalls that absolutely every business has. They find themselves alone with little knowledge or experience. Not recognizing the path to take generally leads to failure.
3. No mentor was mentioned above, but this is so important it deserves its own mention. In most businesses you are on your own and only the strong, innovative, aggressive ones survive. You aren't going to be able to go ask the competition what works for them. That's like asking them to hand over some of their business, and that's not going to happen.
4. Lack of vision. This starts from the moment you came up with the brilliant idea to go into business in the first place. Looking at the opportunity from all aspects, and taking off the “rose colored glasses. " Is there a need, is there room in the market share for another supplier, will the need last or is it just a fad? A great deal goes into deciding if you should start with the business opportunity in the first place. Failure to look to the future could mean certain failure.
5. Location is important in a brick and mortar business, but it is also important in an Internet business. Location in a traditional business of course relates to your customer being able to easily access you or find you and your product or service. In an Internet business it has to do with Search Engine Optimization. If the search engines can't or don't want to find you then your prospective customer is not going to find you either. You could have the greatest store front (web page, capture page, etc. ) and the best product, but if you have no customers. . . well you get the picture don't you?
6. Marketing - lack of, inadequate, or just plain bad marketing will sink your ship. Marketing is probably the number one place business loose money. If marketing isn't effective you are loosing money. Marketing is meant to bring in business, and if it does not effectively do that then you are loosing money. Even if you have business coming in, if you do not know that a particular marketing technique is what's bring in that business you may be loosing money. You need to be testing. You need to know what marketing is working and what is not.
7. Passion for your business. If you have no passion or drive then as soon as the business takes a dip to the negative you will quit before you get started. It's important to understand the peaks and valleys of any endeavor. Business is no different. Just because the storm clouds are overhead today doesn't mean the sun isn't getting ready to make a break. Your passion will often times make or break your business situation. Keep your vision ahead of you and when the skies are darkest just take one step at a time.
8. No personal growth. Everyone needs to be growing or they are stagnant and their business will reflect that. Education is vital for the improvement of every life and business. Self improvement, positive thinking and self talk, helps create the inertia, and flow of attraction that will bring success. See my post on my blog http://organicmarketingsolutions.com/MarketingSolutions/?p=3 Use this post to help you achieve your goals.
9. Lack of or poor planning. This goes along with #4 lack of vision. You must have a very definite plan on where you're going and how you're going to get there. It should be written down in logical steps to follow and they should go from point A to point B to point C and so on. Failure to have a step by step plan will lead to confusion. And if you don't know where you're going, how can you ever get there?
10. Un researched product or service. A product or service has to fill a need or it is an uphill battle to do business. Supply and demand dictates how well your business will do and only thorough research will have you in the right place at the right time to do business successfully.
There you have it. Do your research, educate yourself for personal and business growth, have a vision with passion, have a marketing plan with plans to test how well your marketing plan is working, with a mentor that will give you feedback and direction, with funding in place, and you just may have a winner. Sit back and enjoy the ride.
Touching Peoples Lives
Success requires hard work, diligence, desire, imagination, and a team.
I've got the team. If you have the rest then click the link above and let's get started!